With regard to banks producing money out of thin air, this is a good article, which explains that they don't. Banks have to hold healthy assets as well as Sterling reserves.
https://voxeu.org/article/banks-do-n...y-out-thin-air
As it concludes, if banks were indeed able to create money out of nothing, why would we need to bail them out?
We all know about QE, the Bank of England, The Fed and ECB have all done it and will continue to do so, especially now. But central banks buying bonds from institutions is not the same as printing money to finance expenditure. The debt is not eliminated and remains on their Balance Sheets. But even this is likely to cause inflation if it gets out of control.
What country has printed money specifically to fund expenditure without causing inflation?
Originally Posted by Muddy Retriever
